How to PROPERLY PAY OFF accounts in Collections and REMOVE IT from Credit report ☑️

first of all do not i repeat do not negotiate with anyone over the phone hi friends welcome to moms and money where we talk about managing money making money and saving money for the women in the household in today's video we are going to be talking all about how to properly get things removed like accounts removed off of your credit report that are in collections and how to properly pay for those accounts that are in collections but first before we go into the video i would love for you to join my youtube family by clicking the subscribe button down below and also saying hi on my other platforms that i'm on like facebook and instagram where i actually upload videos to those platforms i would love for you to say hello hit the like button on this video and share it with any family and friends that you think would be helpful it really helps my channel out and i really truly do appreciate it this video goes hand in hand with the previous video that i did about the very first thing you need to do if you have accounts and collections and you have these collection agencies contacting you and hounding you and calling you or the credit card company anyone that you owe money if they're starting to call you and you realize that it's going to be charged off or put in collections there are some crucial steps that you need to do first before you dive in and trying to pay this stuff off and having it removed from your credit report i highly encourage you to go watch that video you can tap this eye right here and i will link it in the description box so hopefully you went and watched that video and now you're back to watch this one so if you watch that video then you know the difference between an account that's been charged off and an account that's been put into collections and hopefully you've pulled your credit report because that's really important to do have your credit pulled look at what's on the credit report look to see if it's accurate okay and if you have anything that are inaccuracies on there or things that are incorrect whether it be late payments accounts that are not yours or whatever leave a comment down below and let me know if you'd like for me to do a video about that because that's a whole other process i'm talking to people where you have it on listed on your credit report and you know that it's yours and you've already had the credit card company validate this debt for you and i talked about that in the previous video about what you need to do to make sure that this is a validated debt that it's correct that it's in your name any little mistake that's on there or anything that's incorrect you want to make sure to communicate with them and to communicate with the credit bureaus like i said i'll do a whole other video if you guys are interested in that and what you need to do if you have things on there that are inaccurate or that just aren't yours so from this point very very first thing you need to do okay is that you have to budget you need to budget i talk about it almost in every video of mine you need to start creating a budget and you need to start working from a budget that really works from you i highly highly recommend a zero-based budget i have a whole video series all about how to do the zero-based budget with my printables that i sell in my shop the link for them will be down below you can tap this eye right here to watch it and i also have a free excel template if you're more of a excel person to do budgeting i know i personally am you can download my free zero-based budget in the description box get yourself on a budget to try to find ways to save okay that is important that's the second thing you've got to save okay look for room in your budget to save for these debts that you have because at this point you should have a round of an amount that you know that you owe um that you're you're going to have to pay and get removed from your credit report and so you've got to save for that money look for some extra money once you're you get in the groove of budgeting you'll see that maybe you're spending too much money on going out maybe you're saving spending too much money on buying clothes or if you're struggling to make ends meet and you're barely barely making it living paycheck to paycheck where you have just enough money to pay your bills or to pay the minimum payments um then you've got to find ways to find some extra money i will have a link in the description box some of my favorite side hustles where you can make some serious money to throw at your debt or even to become a full career so check those out in the description box if you're struggling with paying your bills and if you're looking for a way to make some extra money so budgeting is number one saving is number two now once you saved enough money because you know have around the amount that you know you owe for this debt now it's time for you to get all of your information together so that you can get ready to negotiate with the collection agency or the company that you the lender that you owe the money to let me explain to you what happens when these collection agencies are contacting you let's give an example of susie okay susie had an account with att that ended up charging off for let's say 500 okay so the account ended up charging off with 18t for 500 and then a third-party collection agency actually bought that debt from a t okay because at this point att just gave up on you they charge it off they wrote it off the books it's an accounting process okay they get a tax break for this and so a third-party company will then come in buy that debt of susie's debt from a t for maybe 25 bucks or 100 bucks okay at the most 100 bucks that's expensive but at the most they buy it from a t for a hundred bucks we'll just say that for easy math now the collection agency has the right to hound suzy until she pays it back or until the statute of limitations is extended now i explain all these things in the previous video i explained about knowing your rights and educating yourself about what is legal what is not legal and what you have to pay and what you don't have to pay so make sure you go watch that video so the collection agency has the right to hound susie nonstop on letters calls everything okay and they're gonna say susie you owe 800 you've got to pay 800 because you know you owe this debt here's the debt for 500 and here's our i'll hear all these fees attached to it you've got to pay it but we'll settle for 500 if you pay 500 right now we'll settle and we'll pay it off so this is how the collection agencies make their money is because you're gonna pay you're you're paying the full amount okay if you settle with them you're paying the full amount of the debt that you think you owe but really technically this agency really bought it for 100 bucks so they just gained a 400 profit now i'm talking about people who have accounts that are tens of thousands of dollars worth of credit card debt that have been charged off and um these companies uh buy it for a couple of hundred dollars they can really pocket a lot of money which is why you can tell like they're they make you feel like that you're getting this deal when in reality they're really making money off of you okay so that's just an example of how this works if you're working with a third party collection agency now what you need to do when you feel like you have a good nest egg you know you've saved the money and you're ready to really repair your credit and raise your credit score which by the way please don't pay to get this done you guys you can do this yourself and i said that in the previous videos you can raise your credit yourself okay you could tap this eye right here about i share the tips on how to raise your credit score fast um you can do this yourself you do not have to pay to have this done it can get very expensive but you know it's it's a marathon and not a race so you've got to really just pace yourself and be patient because if you be if you're patient the rewards will come you can be in that 800 club you can you can raise your credit score by 150 points easily by doing these steps okay so that's how it works but now let's go back to your situation let's say that you have saved the money and that you're ready to see what you can do first of all do not i repeat do not negotiate with anyone over the phone okay do not negotiate with them over the phone these people are trained to have you like trip up on your words they're recording everything that you say they can manipulate you they are trained to do this everything that you say is being recorded and if they do want to sue you which they can technically if it's in the statute of limitations they will use every word that you say on the phone you don't need to acknowledge that it's your debt over the phone you don't want to do anything okay when you're ready okay you once you have all your information and the creditors have validated your debt validating and verifying this debt with you which by the way if they can't verify the debt with you they have to stop contacting you about it because then legally can get taken off of your credit report okay so you want to make sure that that step and that's the step that i talked about in the previous video about verifying the debt don't negotiate with them over the phone because like i said they can say one thing and then say what are you talking about i didn't say that you know so just have everything in writing for your safety okay and it's better to have send them a verified letter verified meaning you're going to get a receipt back saying that this was sent and here's your receipt and proof that it was sent to this address okay so once you have that once you get ready to negotiate you want to write your letter and say listen not in these words but i'm just paraphrasing okay and if you need another video about like sample letters and like what i would say leave a comment down below and let me know and i'll do that but you need to say something along the lines of i understand this is my debt here was here's what the original balance is because you should have known what the original balance is not the balance that they're telling you or settling for or whatever whatever the original balance is whatever you're comfortable paying for it because remember they paid less for it you know when you save enough money to pay for it in full you have all of the power in your hands you have the power you have much more power in your hands because if you're settling to pay for a payment plan then they have more power in their hands to say listen just give us this amount of money no we can't remove it from your credit it is what it is because see the thing is if you don't negotiate to have this removed from your credit report it's going to stay there until the statute of limitations is done and it's just going to say paid in full just to have the account and collections is already a negative and derogatory statement on your credit report it dings your credit score so regardless if you have it paid in full or if you still have it on there with the balance on there it's still going to negatively reflect on your credit score so you want to have this removed so in your negotiation letter you need to say i want once this is paid in full with x amount of money it needs to be removed from my credit report now some collection agencies don't have the power to do that and you'll have to contact the original lender and with our example with susie that was at t you'd have to contact att and say hey i want to pay this in full i'm paying this and i want to pay this in full to whatever collection agency it is that it was sold to can i please have this removed as a courtesy from my credit report now you want to be nice you don't want to be you know aggressive in your tone you know you you attract more flies with honey you you know instead of vinegar so you want to be nice and polite of course with your request but just say listen i'll pay this in full i'll pay this in full in cash and have this removed from my credit report so that this can be settled nine out of the ten times listen these collection agencies just want to make their money i would suggest paying your original full balance amount just to have a clean and then also request for them to have it paid removed off of your credit report if they cannot have it removed off your credit report that's when you come and lowball them for the amount that you're willing to pay because at the end of the day it's better to have say that it's paid in full but it's still going to be in your credit report it's still going to reduce your credit score so like why pay all the money then you know so that's what i would say to that if they can agree to have this removed from your credit report then go ahead and pay the balance and full whatever it was so with our example with susie that was 500. susie pays the collection to agency 500 if they agree to remove it from the credit score the credit report that is why you have to get the agreements in writing once they send you the letter or they call you and say hey we agree to your your terms even if they call you that's not enough you say you have to have that in written form please mail me a letter mail me a letter you have to have it in writing y'all that's the only way that you can dispute this with the credit bureaus if you want to have anything removed you can say that they agreed and here's my letter and here's the amount that i paid here's the copy of the money order okay that's how you do that this is how you get the things removed from your credit report now when it's time to pay you do not give them access to your credit card you do not give them access to your bank account you do not let them draft anything from your savings or bank accounts you don't give them access to your debit card you don't want these people to be in your business anymore okay so that's why you're gonna have a money order a copy of the money order you're going to send it verified mail with a receipt you know so that you get the receipt back to you saying that they received it and that is how you're going to deal with these people because you want these people out of your hair you don't want to deal with them ever again we're going to start making better decisions so that we don't have to be in this situation again and don't feel bad about it listen it happens it's happened to me girl in my 20s like i said in the previous video questionable okay it happens okay so forgive yourself it's another day you're in another chapter in your life and you're ready to make great money moves positive money moves moves you're ready to build that financial wealth and sometimes you have to have a good credit score to get there okay now i'm not saying that you know you want to run out and buy a brand new car or a big house we want to live a consumer debt free life that is the goal okay so again let's let's um recap it up we're gonna budget learn how to budget all the resources are linked in the description box save find extra money in your budget somewhere to start saving to pay these things off again you're never gonna hear me say never pay collections which is such a popular you know title here on youtube that people say but really technically they're saying don't just pay it blindly do your research do it the correct way to have it removed from your credit score i care about your credit score i want you to care about your credit score so that in the future as you're rebuilding both positive financial decisions your credit score is going to rise as you as you educate yourself more and make better financial decisions so a budget and save and then at that point when that's when it's time to negotiate gather all your information all of the all of your your credit score uh information from the original creditors from the collection agency have them verify this debt that it is yours you want to know payment history you want to know when the account was open when the account was charged off every single piece of information that you have you want to collect this information and then at that point you want to write your letter verified mail and in that letter you're going to request that it be removed from your credit report if you pay it in full okay now if the company says no we cannot do that we cannot pay it and you you know we cannot remove it from your credit report then contact the original creditor and like i said in our example with susie that was att to see if they can remove it as a courtesy for you but you have to stay on top of this y'all this is why it's expensive to cre with credit repair companies they make so much money because they do all of this work for you now a lot of people will dispute charges and that's a whole another video so again if you want to if you have inaccuracies on your credit report leave a comment down below and i can do a video where on what you need to do to dispute those charges sorry the sun is just giving me what beautiful skin right now but it's kind of bad for my camera because my camera doesn't know what to do but anyway that is it guys leave a comment down below and let me know if you're going through this um any other videos that i can help you because remember on our original series we're talking about the home buying process and it can be detrimental to the home buying process if you have accounts and collections on your credit report so leave a comment down below and let me know where you're at in this process and what other videos you'd like to see from me thank you guys so much for watching if you haven't hit that subscribe button yet you can tap my picture on the screen and you can also check out my previous video right next to it and all of my social media platforms all this down below thank you guys so much for watching and i'll see you in the next video bye we're gonna go ahead and get into this light though right

Channel: Moms and Money

Views: 54,117

Rating: 4.9177814 out of 5

Keywords: moms and money, how to pay an account in collections, never pay collections, budgeting for beginners, budget with me, cash envelopes, credit repair, how to raise your credit score, budgetting, sinking funds, debt confession, single mom budget, dave ramsey, credit repair 101, accounts in collections, paying accounts in collections, cash envelope stuffing

Id: RBED3lLyPdo

Length: 16min 41sec (1001 seconds)

Published: Thu Jul 30 2020